Apple shows mastery of pricing tiers with new iPhones – Gene Munster

“Apple continues to push the boundary of consumer tech by refining and improving their products with today’s updates to the iPhone and Apple Watch,” Gene Munster writes for Loup Ventures. “These improvements drive customer loyalty that creates revenue predictability and should result in higher ASPs, supporting annual cash from operations of $85B+ per year that can be invested in the business and returned to investors.”

“Once again, Apple has shown their mastery of pricing tiers. Factoring in nine new phones with price points above the FY18 ASP ($745) makes it highly likely that ASPs will trend up,” Munster writes. “The iPhone lineup now ranges from $449 to $1,449, with an unweighted average of $765. This is up 20% from last year when the unweighted average was $636, with the lineup ranging from $349 to $1,099.”

“We are raising our iPhone ASP estimate for FY19 to $791 (up 7% y/y) vs. the Street at $765 (up 2% y/y),” Munster writes. “The iPhone franchise is better-positioned for sustainable growth (0%-5%) over the next several years, given Apple continues to earn recurring iPhone customers with innovative hardware and software.”

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MacDailyNews Take: Exactly!


  1. No, they realized the iPhone X was too expensive for most. So they created several cheaper flavor’s X’s while removing the low cost iPhones replacing them with higher cost models.

    Apple took from those customers that could only afford the SE so they could subsidizes their top tire customers with the cheaper X family of iPhones.

    And hey, what about that Mac Mini Pro and the mod new Mac Pro?

    1. Did Apple say that there would be no more product announcements this year? If so I missed it.

      I’m definitely in the market for a new Mac, so I’m looking forward to a future announcement and hoping it will be sooner rather than later.

    2. Some want SE strictly for the price, hence the affordability.
      I suppose quite a sizeable market is prepared to pay premium for small form factor phone with potent performance inside, regardless of the palm size.

  2. The Street seems to have reacted rather favourably to Apple’s announcements. It usually takes longer than that.

    If any short sellers failed to sell sell during the slump yesterday, today’s gains ( currently in excess of 3% ) will come as alarming news for them.

    There might be an opportunity for a little bit of schadenfreude from long term investors. On second thoughts, make that an industrial strength gloat with a side order of a huge grin.

  3. I’m interested in opinions on why someone needs a 512GB iPhone? With iCloud (and others), most data isn’t even kept on the phone. Does anyone have a compelling reason to buy the 512?

    1. I keep a lot of technical equipment manuals in PDF format within iBooks on my iPhone. Many of those manuals are hundreds of pages long.

      When I need to consult a manual while working on location, I’m not always in a place where there is a GSM signal and there’s rarely any WiFi, so the only stuff I can be sure to look up is what’s stored on my iPhone. There are often enormous time pressures, so being able to instantly consult a manual to solve a problem is invaluable.

      It’s a hugely compelling reason for me, but probably doesn’t apply to many other people.

      I sometimes also make audio recordings of unusual sound effects by plugging a professional mixer and microphone into my iPhone ( on those occasions when I have a mixer with me, but no digital field recorder ). An iPhone allows me to make huge numbers of lengthy recordings. To paraphrase thousands of photographers, the best audio recorder is the one you have with you.

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